ITU Regional Workshop on
Bridging the Standardization Gap
(Yangon, Myanmar, 28-29 November 2013)
Broadband Proliferation in
Pakistan through
Universal Service Fund
Zeshan Haider
Senior Manager (International Coordination)
Ministry of Information Technology
Government of Pakistan
zhaider@moitt.gov.pk
Contents of Presentation
•
•
•
•
•
•
Case Study of Universal Service Fund
USF Broadband Programmes
Special Projects
Challenges & Solutions
ITU-Pakistan Collaboration
ITU-Pakistan Collaboration on Broadband
Yangon, Myanmar, 28-29 November 2013
2
Why Invest in Broadband
Infrastructure?
• Transformation of way of lives
• Facilitation of e-services
• Socio-economic benefits
• Achievement of Millennium
Development Goals (MDGs)
Yangon, Myanmar, 28-29 November 2013
3
Universal Service Fund Broadband
Programme: A Case Study of
successful Investment in Broadband
Infrastructure
Yangon, Myanmar, 28-29 November 2013
4
PAK USF MODEL
•
•
•
Public-Private-Partnership - rather than purely Public.
Independent - rather than a part of Ministry or
Regulator
A Company – with a fully authorised Board of Directors
PUBLIC
USF Co. Board of Directors
PRIVATE
Minister of IT
Nominee Cellular SPs
Federal Secretary IT
Nom. Fixed-Line SPs
Member Telecom MoIT
Nominee ISPs
Chairman PTA
Yangon, Myanmar, 28-29 November 2013
CEO USF
Nom. Consumer Groups
6
How USF works in Pakistan?
Government acts as a “Trustee”!
All Licensed Telcos
Ministry of
Finance
Cabinet
Division
1 Rep. each
“USF Policy
Committee”
USF Account
After competitive
Bidding
& Tech. Audits
Yangon, Myanmar, 28-29 November 2013
USF Co.
Ministry of
Information
Technology
‘Company’ under
Companies Act 1984
7
USF Rules & Principles
Open, transparent bidding
All docs on Website
Retail Tariffs subject to PTA
controls
Technology Neutral
No local monopolies:
Obligatory infrastr. share
Performance guarantees by
subsidy winners
Lien on Equipment
Max 50% accumulation of
subsidy
Six-monthly Audits for USFCo.
Yangon, Myanmar, 28-29 November 2013
8
USF Programs
Yangon, Myanmar, 28-29 November 2013
9
USF Programs
4 TRACKS
Rural Telecom
Broadband
Optic Fiber Networks
SPECIAL PROJECTS
Yangon, Myanmar, 28-29 November 2013
10
Broadband
for
un-served
urban areas
Yangon, Myanmar, 28-29 November 2013
11
USF Strategy to spread
Broadband
Target Rural
1. Start by targeting
Unserved Urban
Areas
2. Pay only when
given targets are
achieved
3. More than one
subsidy winner
4. Special emphasis
on Education
Yangon, Myanmar, 28-29 November 2013
Areas through
Community
Telecenters
~470 cities &
towns: no
Broadband
available
Rural areas:
No PCs,
& No
Computerliteracy
11 to 15
large cities:
Broadband is
available
12
Features of Broadband
Program
• Reverse Open auction by sealed bidding among USF
contributors
• Subsidy bid on “per-Broadband-connection”
• More than 1 winner - subject to price-matching
• 2/3rd or max 5 bidders can be winners, a fraction counted as 1
• Output Based Assistance – provide connections to get subsidy
• Targets to be achieved within project time to be eligible for
subsidy
• Winners to install Educational/Community Broadband Centers
(E/CBC)
• Target achievement verification by Tech. Auditors
Yangon, Myanmar, 28-29 November 2013
13
USF Broadband Program
• Provision of Broadband Internet Services/Connectivity
in 2nd/3rd tier cities & towns
• Establishment
(EBCs)
of
Educational
Broadband
Centers
• Establishment
(CBCs)
of
Community
Broadband
Centers
• Investment of PKR 7,557,703,815/• Benefitting population of 21 Million
Yangon, Myanmar, 28-29 November 2013
14
Impact of Subsidy on
Broadband
New
infrastructure by
BSP
Decrease in costs
due to “Economy
of Scales”
One-time
USF
subsidy
Yangon, Myanmar, 28-29 November 2013
Measures to
“sell" USF targetconnections
Increase in No.
of Connections
15
Broadband Program – Target
Areas/Coverage
• Total served population - 32M (18%) in major Cities.
• Un-served urban Population ~ 26mil(15%) in 11 Telecom Regions,
126 Districts with 470 towns.
• ~ 400 (85%) unserved Towns have Population less than 100,000.
Their total Population ~ 50% of Target unserved population
Number of Towns with given Population
180
153
160
Number of Towns
140
125
120
100
80
52
60
35
40
20
33
38
12
9
6
0
5,000
10,000
25,000
50,000
75,000
100,000
200,000
300,000
400,000
Population
Yangon, Myanmar, 28-29 November 2013
16
Broadband Program – Achievements
• So far 7 Projects Launched,
• 284 Towns (70% Towns, 17mil population) covered.
Number of Towns vs Population
90
85
80
73
Number of Towns
70
59
60
56
50
40
40
37
Unserved
Served
30
25 25
19 17
20
10
6
19 17
8
7
2
5
5
0
5,000
10,000
25,000
50,000
75,000
100,000
200,000
300,000
400,000
Population
Yangon, Myanmar, 28-29 November 2013
17
Broadband Achievements
Contracts signed for
491,250 Broadband
Subscribers
474,532 Broadband
Subscribers
achieved
1,036 Educational
Broadband Centers
Established
302 Community
Broadband Centers
Established
Yangon, Myanmar, 28-29 November 2013
18
BROADBAND PROGRAM STATUS
Region
Name
FTR
MTR
STR-I
HTR
GTR
CTR
STR-V
Total BB Subs
BB Subs Achieved
Work
Progress
PTCL
72,500
66,497
92%
Wateen
16,500
11,602
70%
PTCL
63,000
48,313
77%
Worldcall
38,500
43,723
114%
PTCL
23,500
32,619
139%
PTCL
7,500
25,372
338%
Wateen
3,250
3,267
101%
PTCL
41,000
96,367
235%
Worldcall
46,250
50,845
110%
Wateen
21,250
16,647
78%
PTCL
48,000
37,208
78%
Wateen
53,500
11,427
21%
PTCL
56,500
30,645
54%
491,250
474,532
96%
Operator
Total
Yangon, Myanmar, 28-29 November 2013
19
Advertised Broadband Projects
S/N
Telecom Regions
1
Rawalpindi Telecom Region-I
2
Province
No. of
No. of
Unserved
Dist.
Towns
Unserved
Urban
Population
Approx
Target Cons
Punjab
4
26
1,452,000
55,000
Northern Telecom Region-I
KPK
11
37
2,064,000
50,000
3
Northern Telecom Region-II-A
KPK
7
18
902,000
22,500
4
Western Telecom Region-I-A
Balochistan
15
36
1,889,000
37,000
37
117
6,307,000
164,500
Totals
• Under these advertised projects a total of 668 EBCs and
145 CBCs will be established
Yangon, Myanmar, 28-29 November 2013
20
Future Broadband projects
S/N
1
2
3
Telecom Regions
Western Telecom
Region-IB
Northern Telecom
Region-IC
Northern Telecom
Region-IIB
Yangon, Myanmar, 28-29 November 2013
Province
Status
Balochistan Under Study
KPK
KPK
Broadband Projects will be launched after
provision of Optical Fiber Connectivity
Broadband Projects will be launched after
provision of Optical Fiber Connectivity
21
Emphasis on Education +
Community
Computer Labs for Higher Sec.
Schools, Colleges and Libraries
in the area:
• Free provision/installation
• No Monthly charges for 1 year
Educational Broadband Centers
-> Operational : 1,036
-> In progress : 262
-> Advertised : 668
• 5 PCs Lab
• Training of 2 Trainers
Community Broadband Centers
“Educational Broadband
Centers” (EBCs)
Yangon, Myanmar, 28-29 November 2013
-> Operational: 302
-> In progress : 98
-> Advertised : 145
22
Broadband Subscribers in Pakistan
Year
Number of Subscribers
FY 2005-06
26,611
FY 2006-07
45,153
FY 2007-08
168,082
FY 2008-09
413,809
FY 2009-10
900,648
FY 2010-11
1,491,491
FY 2011-12
2,101,315
FY 2012 - 13
2,721,659
August 2013
2,889,155
Yangon, Myanmar, 28-29 November 2013
23
Special Projects - Scope
Telemedicine
ICT for Disabled
Model ICT Labs
Conversion of
Computer Centers
into Telecenters
Yangon, Myanmar, 28-29 November 2013
24
Rural Areas Broadband - Telecenters
~ 56,000 small
villages in Pakistan.
Villages
S.No Province
above 10K
1 Balochistan
65
2 KPK
406
3 Sind
185
4 Punjab
896
5 Islamabad
10
6 FATA
18
Total
1,580
Yangon, Myanmar, 28-29 November 2013
25
Upcoming Special Projects
Universal Telecenters
• Providing access to telecom services for people in the unserved and under-served rural and semi-urban areas
• Each UTC will have;
- Connecting internet through a 2Mbps broadband
- Powered through renewable energy,
- 10 laptops and other essential network elements
(printer/scanner/copier/fax, etc)
• For the benefit of communities living in remote areas of
Pakistan, a pilot project of establishing UTCs at 35
locations across Pakistan has been initiated
Yangon, Myanmar, 28-29 November 2013
26
Challenges
Yangon, Myanmar, 28-29 November 2013
27
Challenges/Hurdles
• High taxes coupled with high capital/operational expenses
• Security Situation
• Natural Calamities
• Power crisis;
• Access problems
• O&M
• Inflation
Yangon, Myanmar, 28-29 November 2013
28
Challenges/Hurdles
• Reaching un-served and under-served areas
• Lack of Demand
- Affordability
-Awareness
• Low Revenues for investors
•
PC Penetration
•
Lack of Education
•
Content Development
•
Country-oriented policies
Yangon, Myanmar, 28-29 November 2013
29
How to overcome challenges?
• Extending Broadband to un-served areas
• Improving affordability
• Viewing Broadband as an eco-system
• Creating Awareness
• Up-gradation of network capability levels
• Conducive public policies
• Public-Private Partnerships
Yangon, Myanmar, 28-29 November 2013
30
Telecenter Challenges...
Sustainability
Someone must take responsibility with
stake in the venture– not govt!
Connectivity
High speed media (like Fiber) mostly
unavailable, areas difficult to reach
Computer
Literacy
Basic knowledge of how to operate
computers is lacking
Content
What will the villagers do with these?
Others
PCs, Electricity, Repair & Maintenance
Yangon, Myanmar, 28-29 November 2013
31
ITU – Pakistan Collaboration
for Broadband
Yangon, Myanmar, 28-29 November 2013
32
Technical Assistance by ITU
• One of the strategic goals of Telecommunication Development
Sector of ITU (ITU-D) is the
– “To assist the membership in maximizing the utilization of
appropriate new technologies, including broadband,
– to develop their telecommunication / ICT infrastructure and
services, and
– to design and deploy resilient telecommunication / ICT network
infrastructures”.
• One of the key actions of ITU Operational Plan 2012 – 15 is
– “to enhance the level of assistance and support to
administrations and ITU-D customers, taking advantage of the
high expertise of the BDT staff”.
• ITU assistance under the ITU Asia-Pacific Actions and Initiatives
– international best practices & research,
– statistical data availability and
– professional/consultant help
33
ITU-Pakistan Collaboration
• Secretary General ITU and Regional Director ITU for
A&P visited Pakistan in May 2012
• ITU CoE Node for Policy & Regulation in Pakistan
• Consultancies secured from ITU on policy matters
– Establishment of Multi-Purpose Telecommunity
Centres in Rural Areas (2007-08).
– Spectrum Management Policy (2010)
– National Broadband Plan for Pakistan (2012)
– Implementation of E-Government in Pakistan (2013)
Yangon, Myanmar, 28-29 November 2013
34
ITU-Pakistan Collaboration for Broadband
• Under the ITU Operational Plan 2012, ITU solicited
proposal from Administration of Pakistan for assistance
from ITU
• MoIT submitted a proposal for the Development of a
“National Broadband Master Plan” for Pakistan which
was approved by ITU for implementation.
• Following ITU mission visited Pakistan in September
2012:
– Mr Jim Holmes, ITU Expert
– Mr Sameer Sharma, Senior Advisor, ITU
• ITU mission held interviews, surveys and meetings
with top-level leadership of the ICTs related entities of
Pakistan
Yangon, Myanmar, 28-29 November 2013
35
ITU-Pakistan Collaboration for Broadband
• A “Broadband Industry Workshop” was also organized in
which the different stakeholders of the broadband industry
of Pakistan had an opportunity to interact with the ITU
delegation.
• ITU Consultancy Team formulated and forwarded a draft of
National Broadband Strategic Action Plan setting up Goals,
specific Targets for each goal, Responsible Stakeholder
against each target and Timelines against each target.
• The plan is being consumed as a baseline document for the
review process of Telecom Sector Policies, which are
currently under review by the Ministry of IT, Pakistan.
• Role of ITU is commendable for providing such free of cost
consultancies to low income and least developed countries
Yangon, Myanmar, 28-29 November 2013
36
Thank you
Yangon, Myanmar, 28-29 November 2013
37